good thursday morning. welcome to "squawk on the street." i'm carl quintanilla, with jim cramer, david faber. more companies raising guidance. q3 gdp, consumer is light, but a new jobless lows the president said to make the sale to house democrats this hour and set to announce the framework of a spending bill later on this morning. >> plus look at shares of ford

they're soaring ahead of the opening, shattering expectations >> i know, i say it every day. stanley, black & decker joining us we're going to start with the breaking news on the framework of the president's spending plan. kayla tausche has more >> the white house this morning is announcing a new revised framework for the president's social and climate priorities that it believes will be able to pass both chambers of congress six years of funding for university pre-k a one-year expansion of the tax credit new incentives, and extensions for affordable care act credits.

that's just a handful. to pay for some of these things the plan will establish a 15% minimum tax for corporations here in the u.s. and overseas, will introduce a 1% surcharge on tax buybacks, add a 5% tax on individuals making more than a million, and another 25% over the $25 million. it includes many items the president campaigned on. it also excludes a tax on billionaires and plan to report bank account cash flow for many americans. the plan has not official lip been scored by the congressional budget office, but the white

house believes it could raise funds -- the white house will not say what assurances it has received, only that it believes all 50 democrat democratic sena vote for the plan, but not saying specifically which lawmakers have said their vote is for certain a yes, and what exactly that vote count would be guys >> kayla, i guess the challenge at this point is getting the house progressives to go along, yes? any doubt about that >> that is, of course, the challenge here they wanted this $3.5 trillion plan that the president announced at the beginning every time something came to the chopping block, there was a lot of opposition. about a week ago we saw a dramatic change in messaging

they understood something was better than nothing and the package needed, rho khanna said that president biden said in no uncertain terms he needed a package today, and that in his words, american prestige was on the line the messaging after that meeting changed dramatically in a way that would lead many observers to believe that progressives would still be on board. what we also wonder is whether that means the progressives would vote for a $1 billion bipartisan infrastructure bill those are going to be considered in tandem, appeared the president this morning will make the case why both of those need to be passed. >> kayla on the revenue-raising side of this, we spent a lot of time talking about the billionaires tax i think you just reported it won't be a part of this, so what are the key revenue-raising

aspects? >> they're specifically the 15% global minimum tax that treasure rip secretary janet yellen had negotiated with the on oecd. a white house fact seat says about $325 billion, also a 1% surcharge on tax buybacks. to enforce, to stops up enforcement at the irs, that should rate about $400 billion to crack down on what they believe are tax evasion. these are the rough buckets of what the white house and negotiators are at least targeting here all right. kayla, we're going to wade through that and look forward to hearing from the president we think about 11:30 in the east room what do we think here, jim

talking with david appeared kayla about the revenue raisers raisers, the framework talks about taxes on millionaires and billionaires. >> i speak to -- i spoke to about 100 companies this week. no one can find any workers, so the idea you need to stimulate the economy, do infrastructure, where are they going to find the workers? >> the point is to get the infrastructure done once the funds are allocated. that would be difficult. >> the disconnect is rather extraordinary. hongly, i spoke, if you just look at the tape, no one can find workers, sore what are you supposed to do.

>> so the answer is not to do anything >> i think the answer is to be more considered -- try to put people to work is one thing. if you have disastrous places that have to be fixed, final you can allocate the money, but there are no workers, there is no machinery, there's very few people the government can be competitive, can pay more, i guess. >> and that makes sense. they're just dumping a trillion if the bill is signed. but they keefe talking about they need to create jobs the private sector is create ago lot. this is not some right-wing fascist stuff, i'm saying you just can't find workers. left wing, right wing, union workers, non-union workers.

>> the framework is create good paying jobs, enable more americans to join and remain in the labor force. that's just great. who are they >> maybe the 8, people coming off the -- >> why don't we admit we have a huge labor shortage. maybe if you pay people less in terms of the benefits, maybe these people would be found. but you talk to boeing, raytheon, carrier, otis, any company that we have today, the biggest problem is, look, we're trying to find workers here. prologis, they have to automate fast, because they can't find workers. it's a big disconnect.

i'm case by case, but if you want to drill a well, you want to drive a truck, use a crane, by the way, truck drivers -- >> that's underneath all of this wages are going to go up, which is viewed generally as a positive >> i think it's positive, but if the government is going to compete for private sector for workers -- >> it's going to have to pay. >> about but why bother? if you raise everybody's taxes. >> when it comes to some of the things in the infrastructure bill, there are things that are not going to be tackled by corporate america. >> i'll leave it at this i'm in favor of the infrastructure spend i just think what's going to happen is all the contractors are already taken, and it would be great to have them leave their current job, move on to the government job, but that's not what a contract allows.

>> it is labor dynamics are not forever, right this goes for a while. >> but if you want to build a house, a commercial building, a warehouse, you want to billed a plane, a truck, a car, you can't find enough workers. maybe these people come back, but it's fine. they should just say listen, it's not for good paying jobs. it's to get the infrastructure done right, and we are going do compete against the private sector if we have to to get jobs. >> there may be a skills gap, too. they've been talking about that for years. >> that's true i'm just saying if you're running one of the top, say, 500 companies in the country, you're trying to go to mexico or china to find workers here now you just aed more fuel for the fire. >> all this ties into ford, up sharply prenational, announcing

stole reinstate the different in the current quarter, sees chipping supply marketly improving. this is what jim farley said last night. >> we've been able to achieve it for short-term sustainable improvements, including semiconductors, prioritizing high demand and high-profit vehicles perhaps our biggest jobs is to break the conrestaurants we have in manufacturing in our supply chain, so we can get these products out to thesecustomers >> so you're taking a bit of a victory lap if you're a member of the investment club, you'll know this is my favorite stock we had to trim it a bit, but i want to compliment jim

i was appalled -- bill mcdermott got a billion congratulations, but with farley, why was he not hurt by the chip shortage? because he knows how to source he's been going to every single semiconductor, give me your huddled chips t. yearning to be free he comes to me and says, hey, i know you'll be disappointed, you probably wanted another different. no he is going to challenge musk. he is ready to bury mursk what >> we've seen it. >> it's the start of the show. detroit it back. dividend, i love the orders, money per vehicles he wants to crush musk, he

aheaded tesla added to the forte, and he's not going to take it. he's very exciting i do love the guy, and my maverick, which i ordered in march, now it's january. >> when were you originally supposed to get it >> in time for the summer planting season. then in time to go to the ealso, then in time to go to the super bowl. >> linda is on the cover of "time," though today, piper in that i new street high target of tesla set so far all of the tesla killers haven't done it so far. >> yeah. that's true. how about the mustang mach-e

jim farley is a different executive. he wants to win. he think being elon musk and said, you know, it's like, do you want musk to talk? >> no. >> no. tesla has -- >> okay. okay you think that farley didn't hear that? >> he heard it. >> i want him to come in right now. >> what, are you going to beam him in >> why not he's like doritos -- fi >> meaning >> they're all over. c'mon, jim, i'm trying to teleport him the way that zuckerberg started ed

teleporting -- i am not moving on i'm doing a soliloquy here >> people on the floor are like, what is wrong? we will continue to watch gm a big morning on tap take a look at futures we'll get to all the earnings we have not yetoued, tchwhen we come back in a minute. hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone -

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do you know why? >> why because they're selling it down at 50 now it's at five what a great time to bring in the ceo of service now bill mcdermott beat the numbers, talking about -- bill, i'm going to echo all of the analysts. congratulations on a great quarter, how did you do it >> thank you very much, sdwrim the company did a great job. there's a couple things going on there's a structural incline for digital transformation it's a.8 trillion market in the

next generation. we're so ready for they very challenging times. we have the technology advantage. that's why we're growing faster than everybody we're actually growing faster than when we were a company half our size 31% growth, margins are best in the business and customers are super happy. >> there's two ways to beth tell people how you're doug the cadence of million dollar deals than last year, and once ear in, how much business are you doing? >> it's amazing. we did 63 deals greater than $1 million in billable revenue. that was up 50%. the now platform is so amazing the i.t. architecture of

companies now is the business architecture, so everybody executive wants to give their employees an amazing experience to win the talent war. you have to satisfy your customers in whole new ways. manage field service without going in the field, and then this create a workflow, this 500 million new net applications, there's not enough engineers to do it. so they're doing it on the now platform at a record clip. so all of these thingser converging at one. that's why in every renal everyone, every industry, servicenow is on a tear around the globe. >> a lot of people feel we're in the middle innings i was talking about the government numbers that came out today and how i don't believe they're actually accurate, and your numbers with the federal

government, they haven't started digitizing yet, have they? >> they are doing some greet things they realize to have to invest in digitization. that's why the i.r.s., as an example, took very complex systems and infrastructure, and disparate silos from 12 different platforms and consolidated it all on the servicenow platform to give the citizens a great service we're seeing this at the state and local level. think about the vaccine management, which is likely to be an ongoing process where, you know, you need your booster shots. we're handling the distribution, administration and monitoring of vaccinations all over the world. think of us as the control tower for digitization you see it in every g.o., every

persona in the enterprise clamoring for the one solution that can make the complexity go away and get things simple that turn into servicenow thank you, customers, partners and great friends. i don't know if you saw the partnership we do with microsoft, fully integrating teams into the servicenow platform to reach 275 million people in the interspree, or salonas, where we can immediately activate new processes in minutes there was a great moment you talked about industries really hurt by the pandemic these are all now placing huge orders

>> it's amazing, they're building on the fly application, and building 70 news applications on our platform to reinvent the way they run our business verizon and telco, and the list goes on and on what you are seeing is all these industries challenged, you'll have to rethink the supply chain on thefully. you might have to get new partners you might have to source from different places in the world, plus you want to be highly inclusive, they're following the labor laws, make sure they're looking at net zero the way you are, we do it with apredictive analytic platform from servicenow can you move fast. you don't have to to be tethered we will liberate the enterprise. that's the game plan, jim. >> bill, congratulations

i do need you to digitize some parts of the eagles so we can win some games thank you so much, bill. >> thank you so much, jim. whether we come back, a quarterly beat for yum brands, as it navigates the supply chain issues we'll talk to the ceo of take a look at futures here, oil is getting close to the two-week low, and more progress on -- more "squawk on the street" when we come back

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>> announcer: the opening bell is brought to you by -- less than three minutes before we get started with trading here let's squeeze in a mad dash. these earnings did not get well received >> their outlook wasn't that good. >> mastercard is today. >> mastercard is 331

we need to focus on these companies. this is a company that was stronger on every single dr drivers. strong for travel, crypto will be a business, but it's largely investment mastercard, when you compare, say, affirm to mastercard, a little different >> a little different. >> they bought back a lot of stock, but now they have $4.8 billion under -- i would bike stock today. >> because the company will be in there. >> i've got to tell you, a.j. and dishis predecessor, these companies are the backbone of merchant work, but we don't think about them enough, because they're not vocal. >> i do make that point on visa, and also did lose some market

cap yet, but still a $460 billion market cap company, larger than every bank other than jpmorgan. >> and they gave a cautious guide. mastercard is doing better than writesa right now. >> do we know why? what is it they're doing better? >> they have stronger diversity into travel and discretionary spend. discretionary spend is coming back ahead so, in other words, people stillant baying i'll use ethereum, it's for investment. some say different speculation. >> some would. >> but i likethis company very much i think it's not too late to get in it. what size company is -- [ cheers and applause let's get the opening bell

and the cnbc realtime exchange [ cheers and applause [ bell ringing ] jim, one big question for a lot of people is how the market is absorbing some of these hawkish moves out of the bank of canada, bank of new zealand, bank of england? >> what a great point. the stock market is disassociating itself from what is going on, but that is typical of these two weeks >> that chant gym, gym, gym, is that what they're say?

yeah. >> first apple, amazon, that's what we're focused on, otherwise we would be focused on these and what's going on happen we do have a lot of people saying housing is going to get hurt. >> mortgage rates now highest since april. >> yes. >> but your point is -- but the belief that companies can handle it. >> black & decker is raising prices next quarter to be able to do that costs are going up, jobs are -- look, is it -- if you're looking for a job, you are in charge, labor is in charge, particularly, as david likes to talk about, the whole days where you don't go to work people are redoing their housing, now it's their office of the ones -- of amazon, f.a.a.n.g., the one i'm most focused on is facebook what i want to hear about,

frankly is they're revolutionizing the company. i said last night, the idea it's a solve media company is kind of ridiculous i had facebook in college, but we got the facebook, that was something, freshman year let's go beyond. >> so all the troubles that's vunded it for years has been about the news feed and user content. >> i think when you're preserving documents, obviously there's repercussions, but i'm going to say yes to that i've always felt, when i first heard facebook, you know, when you got that, you were seeing who's from your school and stuff. it's really old, and they're doing so much more metaverse is really the next ten years. i think transponding, david, i know people say, jim, they're not going to do it, v.r. has

been a bust, whatever. i want to go with my avatar, go to your house and really explain to you the world. >> will you explain the world to me at your house >> i'm going to beam my avatar into your room. >> so i never get away from you, is what you're saying. >> and then i just think you'll be blown away. >> we're going to be talking about the metaverse a lot. >> what's the largest semiconductor? >> nvidia. by the way, that stock has been a very strong performer, even this week. even though we talked about -- nvidia had a very strong day. >> i think they're going to off -- offer a lot of money to craters. >> a look at some other movers this morning we have a lot of ceos to come.

i do have to point out, our parent company, which reported earnings that were actually considered to be good when i was talking to people this morning, ebitda was quite strong, people seemed encouraged by the buyback, but look at comcast shares, they're down another four-plus percent. you've got to believe something was said on the call --. i left my phone upstairs, people may be texting me to tell me why, but regardless, the stock is getting hit >> i was being interviewed saying i don't think the bears would be respected, those headline numbers the bears are winning again. >> they are. they are they are and, you know, the concern there is there's continued competition, the overbuild to a certain extend from tea, concerning their fiber aspirations, oh, yeah, my phone. thank you. >> on the call, there was,

according to variety a discussion of peacock where analysts asked for hard subscribers numbers and the ceo said peacock is doing well, expects a ramp-up of originals after the pandemic >> and always hard to talk about your parent company. it's the one stock we say we own, or many of us do, but there are questions about peacock in terms of the allocation towards that, direct-to-consumer is so important for so many of these content media companies, in fact by far the primary concern for almost all of them are you in are you out? can you really is it enough capital do you have to spend a lot more to really compete? >> apple, apple plus tonight, if you tell tim cooke, i need a

couple million to do this, he would say why are you wasting my time here you go. twilio, that stock is down this morning. >> there was an actual definitive slowdown and the guidance was substantially lower than i thought it would be, but sometimes there are executives that really, really matter to a company. one of them is george hu, and a lot of people have gotten to know jorju, but this company was beautifully managed by both. to see him go is a serious, serious negative i'm not just saying it because i've learned a lot from him, but there are certain people, if they decide to leave, that's a

hidden secret sauce why the stock is going lower >> last night, between ebay, twilio, jim, and there were some other names, not a good response to earnings. >> no. you have to go into the world of it is servicenows. >> shop. >> yeah, we haven't talked about shop that seems like a definitive slowdown. >> though they're not getting hit as much. >> shopify only down 1%. >> look, think about it's kla, a beautiful company. they make semicap equipment. teradyne does testing. there was a story that bloomberg had earlier there were some issues, but it looks like -- from the teradyne call, which was very, very good. that's fine. and then the industrials that are just doing well.

some of these companies, yes, were disappointing last night was not a super night, except for ford farley -- i don't want to -- i can't emphasize it enough. detroit is back. farley will change his whole method of buying a car i don't think he serially hates murph, but i told him musk called me a hologram >> it's going to be a fun race to watch ium brands, pizza hut, taco bell beats on the top and bottom line this morning despite some smaller than expected comps for the quarter here to break down the numbers, david gibbs. good morning, great to see you, as always. >> thanks for having me on >> some of the comps were not quite what the street was looking for.

any explanation for it. >> >> it was a great quarter in terms of sales all four of our brands were positive on a one-year base and a two-year basis globally. we really can't ask for much more than that you also may have picked up on the fact we had $5 billion of sales. that's up from reqq2 the 760 net new units we opened for the quarter, a record for the third quarter. we're clearly on our way for a report for the year, probably a record for the restaurant industry of all time. >> five billion in digital around the world what is the mix right now on digital? >> we're closing in on 40% mix, it's up about a point and a

half it's really impressive our dine-in business went up $600 million quarter over quarter. you would have thought that would have taken some of the steam out of the digit at. not the case digital is proving to be to be quite sticky with the consumer it makes our business more efficient. >> david, thank you for coming on the show. >> thank you, jim. comparable sales numbers we are looking for something a bit higher, 6.5%, and now, okay, it's entirely possible those numbers are wrong, but what i'm trying to do is come to grips with the fact that -- maybe the estimates are wrong, but we have to deal with the fact that something is at odds explain to us why we should say, you know what? you don't have to focus on these

estimates, yum is doing better than the estimates, the stock has had a nice run this year expectations are inflated. i won't get into quarter-to-quarter swings on the stock price. we know if we keep doing what we did in the third quarter, we'll create value for our shareholders we have a portfolio of companies, 290 brand country combinations, it's hard to get everything firing on all cylinders around the world, but that's what you saw. all four brands on a one-year basis, on a two-year basis, there's really no problems in our portfolio at yum we have a strong business that's growing worldwide. >> okay. so let's talk about th expansion, which i think is absolutely terrific and the best way to look at yum can you tell me whether you're

able to get workers? i know your model does that necessarily mean you're impinged by this, but we've been talking about a worker shortage all over the world. what are you experiencing? >> clearly there's pressure on labor, particularly in the u.s not nearly as much an issue outside the u.s., where 60% of our business occurs. but we've always talked about the differentiator being the culture we have in our restaurants all the ways to becoming franchisees that's become much more important in this environment. i don't think people are talking enough about retention yes, it's hard to fill open jobs, but let's not get those jobs open. let's retain these jobs, and our franchise years are doing a terrific job one franchisee does a why are you staying here survey? not exiting employees, asking

them why they left, but asking them why they stay, so they can lean on the things that keep employees staying in our restaurants. that's the things about the culture, the environment and the place that invests in you and your development >> david, one thing that will keach them is paying them more what are your expectations for wages and what they may be a year from now? >> we have made a series of increases. we pay well for our in-store employees, and i expect that to continue to increase i think there will be continued pressure on that line, but we know in our industry, particularly for yum, with our scale, nobody's better at it so we can manage those pressures. we can plug our supply chain in a way that we can continue to provide amazing value and convenience for consumers on the best tasting food and we can take price as a last resort.

we do business in so many countries, we face inflationary pressures around at the world. >> david, i noticed operating margin down at kfc, down at taco, but up at pizza. what is different? >> the pizza hut story is really one of a very impressive turnaround the bills over the last few years has been reformulated to be more of an off-premises bills. the sales for pizza in the u.s. were up 17% this quarter sales off-premise around the world were up 21%. so a very bright future for pizza hut investing in digital technology the number to look at, when you're thinking about margins in our business is what are our frisch years making at the unit level. that's what determines the future of the business

are our units profitable they'll invest in building new stores i would guide investors to look at the 760 new stores being build, all with franchise year capital, because the store level profitability is at near-record levels, and they continue to see that, with the shift to digital, the top-line growth. david, fascinating time in qsr right now. we appreciate the highlights on the quarter. see you soon. >> thanks, carl. still to come this morning, the inflation effect earnings beat overshadowed by lower guidance, and we'll talk to the ceo, in the meantime keep your eye on the bond record and treasuries today two tens spread now -- as we get day three of the curve flattening that we're seeing happening all around the world we'll be right back.

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back and becker shares are falling despite an earnings beat, which we'll explain it, so don't panic, donnell sell yet. joining us is stanley back & decker jim lurie. i think this story is a growth stock with tremendous revenues, but you have port issues, you have cost issues, but can we step back and say it's growing like i've never seen it? >> it's growing like i've never seen it, either. it's incredible.

we're capping on this year with approximately $3 billion in organic growth, which han benefited from so many secular trends, the consumers ease reconnection to home and garden, the red-hot garden, red hot housing market, refurb market, all these different things coming together and providing a great demand backdrop and then the company itself has revitalized its product development and we have tremendous organic initiatives e-commerce is now 20% of our business running 20 to 30% growth, so we have that going for us so we have all this demand and so forth and just a little bit of, you know, some challenges with the port situation and some of the other things you referenced, but it's altogether an exciting time here. next year looks equally as exciting with the mid single

digit plus volume growth we'll have some price next year. so close to 10% of organic growth and 3% of acquisitions that we've announced and are in process of antitrust approval. >> let's go over that price share because a lot of viewers will say the price, of course he has price, but you're talking about is capturing the cost that you have and passing them to the consumer of which you're able to do because you have the best brand in the industry. >> yeah. we have some terrific brands dewalt, craftsman, black and decker, stanley among others, and, you know, it is -- there is so much inflation that there is no choice but to pass it on. it's almost in some respects a better pricing environment than if you just have, you know, death by a thousand cuts inflation. you know, massive inflation. over -- if you take the combination of material inflation, labor inflation, and

premium transportation costs to deal with some of the supply chain challenges it's over a billion dollars of impact. it's a 16, $17 billion company right now in terms of revenue, that's a big nut we are going to recover 100% of that in price mix and new products and things like that. >> there's a flotilla off the coast of california and we know that it sits there as the white house tries to figure out what to do. if i were to go into those, that navy fleet so to speak, how much stanley black and decker would i find in the giant container ships? >> you would find a massive amount the reality is that about -- at the beginning of the pandemic we had $300 million of in transit inventory. today we have about $800 million. half a billion dollars of inventory, more of which is tied up in process of getting from asia to the developed markets

including that flotilla off the coast of long beach and l.a. >> there is, you know, we've listened to ford last night. they talked about chip supply maybe getting better sequentially, china shipping rates are off the september high baltic dry is down 20 plus percent from the high. are you seeing directionally some relief? >> we're seeing stabilization and i do believe, you know, steel is a big part of our inflation story and i do believe that, you know, artificially high right now based on the tariffs that exist especially as it relates to china and, you know, the protection of the u.s. steel industry and so on i think at some point if you look at the auto demand and the demand for steel, much of it is consumed by the auto industry. sooner or later with the volume down the way it is in automotive, that umbrella has to crumble. i think that will be a big help. some of the other things you referenced as well certainly have stabilized and maybe some

cases there's some light at the end of the tunnel on some of those. >> jim, you were one of the people who took the pledge under president trump to bring back a lot of business here what's it like to find workers here and what's it like to have to deal with perhaps genuine automation, the kind of which we talk about on air because you can't find workers >> yeah. it's super challenging we have about 1600 open manufacturing jobs right now which is about 5% of our workforce. we've been probably more successful than some of the other folks. that has to do with what we pay, where our factories are located, the size of our factory, et cetera the automation has been something we've been working on for years and so we're, you know, three or four years into a major automation initiative, major initiative to bring back manufacturing to the u.s. and we're just -- you know, the capacity that we've opened up has been consumed by the great demand growth that we've had and

ultimately we will bring back more volume from china, but we're going to have to open up more capacity in north america and mexico and the u.s >> well, you are really kind of the poster boy for what's happening in that you have tremendous demand, great growth, you just need the product which i think is something you're going to get jim from stanley black and decker, thank you for coming on "squawk on the street. >> thanks, guys. appreciate it. take care. >> jim, what's tonight >> i've got dow chemical which is important because i'm also doing an esg part today that will matter. this is the rodgy dangerfield stock. when are people going to give brunswick what it deserves george leaving -- >> toyota. >> well one of the greats, a true titan, steve angel at lynn, is going to step up and retire this company's stock would be up

if he said you know what, i can't wait to go to work next year he's that powerful, that great he has a great statement for green hydrogen and he's just so terrific and, you know, i wish him well we'll talk to him. but his stepping down is causing that stock to step down. not the earnings which were amazing. >> all right jim, we're working our way through this week. >> yeah. >> well, when david steps in to my metae verse, i am rebranding myself, my friend. >> into what >> i don't know. i haven't decided yet. >> you haven't >> no. i don't know who do i want to be? i want to be the g.o.a.t. of something. >> the g.o.a.t.? >> the g.o.a.t >> i like that pose right there. >> you like that >> we think you're g.o.a.t. in many ways. >> thank you >> maybe that's what i'll be, come back as muhammad ali like when he gave the poetry, gave a commencement speech, come back as muhammad ali. >> you have to get in line

only one. >> although in the meta verse you can do whatever you want. >> come back as the gladdater except this time i win. >> we'll see you tonight "mad money." you can get in on the new cnbc investing club with jim at cnbc.com/investing club or use e code on your screen dow is up 200. back to 4580. in 2016, i was working at the amazon warehouse when my brother passed away. and a couple of years later, my mother passed away. after taking care of them, i knew that i really wanted to become a nurse. amazon helped me with training and tuition. today, i'm a medical assistant and i'm studying to become a registered nurse. in filipino: you'll always be in my heart.

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goose thursday morning welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan and david faber live at post nine of the new york stock exchange s&p 4580 as we're watching obviously a big mix of earnings. the curve flattening continues, q3 gdp and the president trying to lay out the framework for social spending and infrastructure got some housing data to start the hour to diana olick >> good morning, carl. pending home sales which are a measure of signed contract to buy existing homes fell 2.3% in september compared with august that according to the national association of realtors. that's a miss. analysts were predicting a slight monthly gain.

sales 8% lower now pending sales are forward looking indicator of closed sales in one to two months now the reasons sales may have dropped higher mortgage rates. the average year on the 30-year fixed fell below 3% in july and stayed there until september according to mortgage news daily. then crossed over 3% ending at 5% buyers are still contending with very high home prices up close to 20% year over year nationally there were signs, though, in august that market might be cooling with fewer bidding wars and the price gains held the same as july regionally pending sales fell hardest in the northeast may have been due in part to hurricane ida. morgan >> all right diana olick. thank you. 30 minutes into the trading session. three movers we're watching. there's a lot today. we're going to start with merck. beating earnings estimates with revenue topping forecasts boosted by stronger sales of vaccines and cancer drugs.

you can see shares of merck up 3% right now shares of our parent company comcast well off the lows beating expectations for revenue, earnings and internet customers in the third quarter that stock trading flat. we will end with caterpillar beating q3 bottom line estimates amid elevated demand in the construction industry and, of course, we've seen higher prices, guys, in caterpillar but the higher costs because freight and transportation bottlenecks and supply chain issues and higher material costs we've been talking about with you so many companies showing up in those earnings results as well >> yeah. so many movers today we mentioned our parent company, down 4% for reasons that i was not quite able to understand given it seemed to be a relatively positive quarter. as you pointed out comcast shares have rebounded to flat. at&t shares are up strongly on news at least at this point that

i'm not fully aware of, if there is news, other than perhaps some people signing on there. yeah you can see that's a significant move for at&t. not earnings related the drug stocks up nicely. merck reported, but it's beyond that, it's kind of a group move in part because it does it for the biden administration and we're going to get a lot more from them as the day goes on, but may not be moving against drug -- higher drug prices in the way perhaps had been thought previously. >> merck one of several companies that raised guidance with northrop and wpp and sony and panasonic, but on the merck front looking for revenue tar targets. as we cannot wait for a good antiviral to help us fight this pandemic. >> we are probably weeks away now potentially from that emergency usage authorization from the fda seeking for that

drug we've been following since the earliest days. when you talk now about, you know, march of 2020, billion in revenues and 2022 it shows you what can happen. >> ridgeback a nice chunk of that. >> yeah. they are >> good -- >> they did sign that important deal yesterday they would point out for it to be produced in developing nations and provided at a much lower cost which will be important in continuing to combat the pandemic. another big earnings mover this morning is ford. we talked about that at the top of the 9:00 hour those shares are far higher, phil lebeau, up 12% behind the numbers. very strong. >> david, you don't see a 12% move for ford shares often i can count on my hand a handful of times over the last 20 years i've seen the stock move this much this quickly. here's the reason why. when you take a look at the earnings for the eartthird quar,

almost double than what the street was estimates, but we expect stronger q4 sales raising their profit sales for 2021, was $9 billion to $10 billion, now $10.5 billion to $11.5 billion in terms of the semiconductor situation, it is far better than what we saw at the end of the second quarter they said we're cutting back our production in q2 did better in q3 they say the supply is improving and will throughout 2022 strong ev demand growing order bank put all this together and you have shares basically at levels we haven't seen since 2013/2014. and this brings up the question, how has ford done under jim farley for some context, take a look at the shares of ford under the previous four ceos we know what happened with hackett and mark fields and adam malala the only ceo since 2000 who have seen the shares appreciate bill ford who ran the company in the 2000s the stock didn't do anything take a look at ford shares since

jim farley became ceo in october of last year. up 160%. the chart says it all. again, stock up almost 12% today, guys. >> i like looking at those comparison i'm curious about the ford results and commentary from management there, how it compares to what we're seeing in earnings from some of the other automakers, whether vw or gm yesterday? >> got to separate those out, morgan talk about general motors since they reported yesterday. beat the street but did not give guidance that was as robust as ford nowhere clear to as robust as ford as a result, the street kind of went i'm not crazy about what i'm seeing from general motors over the near term farther out, i like what i hear from them about the evs, that's what analysts are saying, but in the near term not crazy about what they're seeing from general motors in terms of vw, skalantis out

with the deliveries and revenues for the third quarter today, look, they're both impacted because of the chip crisis vw, the ceo, said they were far more impacted in ceo than in q2. you have to look at those two and realize the bit of a different animal there and also those shares don't move nearly the same amount as ford and general motors at least here in the united states. the stocks do move, but you see much more of a quicker reaction because it's investors here in the u.s. and that's why you see the reaction that you see. don't forget, toyota, now back to close to 52-week high. >> phil, their comments about chip supply getting better quarter on quarter is that seen as a prism with which to look at the industry or because ford is good at sourcing >> they did a better job at sourcing they also got hit by the fire back in q2 gm lit by covid-19 hitting a

chip plant or plants in malaysia in q3. some of the difference there it is the entire industry, carl, to answer your question. it's going to improve in 2022. it's going to linger almost every ceo says we're probably going to see some impact all the way through '22, maybe '23. it's going to lessen in severity but there will be some impact. >> wow what a week. first the autos. we'll talk about it too. phil lebeau. in the next hour the president is set to speak on his social spending plan. kayla tausche is in washington with details hi again, kayla. >> president biden is on capitol hill right now in a meeting with house democrats that is just breaking up. the goal is to convince them to vote for a new $1.75 trillion spending package and also for a $1 trillion infrastructure deal as biden drives home the need to tout these investments when he meets with global partners

overseas the policies in the latest version of his build back better plan include $555 billion in climatecredits, $400 billion for day care and preschool, $200 billion to extend the child and earned income tax credits for one year, and $150 billion each for housing and in home care for seniors and the disabled the estimated offsets in white house plan includes $675 billion from enforcing a 15% minimum corporate tax on companies here and on foreign profits of large u.s. companies $400 billion raised in new irs tax enforcement. $230 billionpy charging a new sur tax on individuals making more than $10 billion and a new 1% tax on stock buybacks the plan is roughly half the size of president biden's original proposal. meaning quite a bit got cut out on both sides of the ledger. the framework excludes 12 weeks

of paid leave, free community college and drug pricing provisions as well as raising tax rates for all u.s. corporations, all individuals above $400,000, capital gains, and carried interest president biden arriving at the capitol flanked by his top negotiators asked whether this plan has enough support to pass? when he was pressed on the support of senator bernie sanders he said everyone's on board. nbc news reporting progressives want to see the legislative text before committing. what they and the president say after the visit. back to you. >> all right kayla, thank you very much kayla tausche in washington. as we go to break take a look at the road map for the rest of the hour including oil execs from exxon, bp, chevron and shell set to testify before house oversight. the first sworn testimony about their products and ties to climate change we've got details. we're going to speak with the ceo of ebay.

a first on cnbc. the stock is under pressure this morning following what was somewhat a weak sales outlook. >> northrop grumman on the nslasce th shares sliding. we'll break down the quarter for the defense giant and more "squawk on the street" still ahead. don't go anywhere. o. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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joining us the chairman and ceo of carrier good to have you back. you know, you're at the center of a lot of trends, some positive, others we talk about every day whether supply chain or raw material cost increases i want to get to that to begin here supplier price increases and chip shortages and full input year cost pressure went from $250 million to about $375 million. how are you dealing with that? >> really two ways, david. thank you for having me. partly on price. we've been very aggressive in price and in the fourth quarter will be price cost neutral and managing all the controlbles we're tactically getting through the supply chain issues now but longer term investing in automation a couple years ago we had a million automation hours this year we'll have 3 million automation hours on our way to 6 million. we're investing in dual sourcing we had 25% of our critical

components with dual source and this year 35% on our way to 75%. so what we have to do is two things raise prices aggressively as we can and we are doing that. announced further price increases this week. and then set up a more resilient supply chain for the future. >> right when it comes to pricing actions and i want to talk to you about the supply chain as well, in terms of a additional pricing actions you may take to offset those rising inflationary pressures, what will they be >> earlier this week we announced a 10% price increase for our residential business, 12% for our light commercial business and business by business around the world we're having to take very aggressive action, but in a very constructive way with our customers because they understand it. they're seeing pressures across the supply chain with everyone leaning into price the good news is, on the supply chain side we're keeping up generally with this demand david, we came into this year thinking that our sales would be up 5% year over year we just raised our sales

forecast, you know, today for the third time it's now going to be up 13% year over year. so it does put a lot of pressure on the supply chain, but generally we're supporting it albeit at higher costs. >> i know you talked a bit about having a supply chain war room that operates 24 hours a day i assume you didn't have one a year ago what is going on in that room? what are people doing during the 24 hours >> funny enough we set it up when covid hit we set up a supply chain war room because we're dealing with covid issues. it's morphed into the supply/demand imbalance. that war room has progressed and we have because we're such a global business, 80% of our people are outside the united states so we have a very formal transition from north america, europe, asia, where we have a commodity management war room that takes over acute supplier issues from a series of handoffs we are having to be tactical

now. i think eventually as you get into the latter part of next year you will have supply and demand more imbalanced and then prices, input costs will modulate a little bit. i think the good news for us, we're going into next year with eyes wide open on the inflationary input side. we came in thinking we would have 30 million of inflationary pressure it's $375 million. we've been kind of chasing it this year on the price side. we're now announcing our price increases now expecting kind of the inflationary sprurs pressures to increase. let's talk hydro flour row carbons because as you're talking about the increased demand you had the biden administration say it's going to reduce the use of hscs which are used in air conditioning and refrigeration by 85% over the next 15 years. how does that take place at carrier and what does it mean for your company >> yeah. we've been seeing this coming both in north america and europe

after the amendment. we've expected the reduction in hfcs that will make sure we continue to buy at the existing hfcs to be protected what will happen in the united states the existing will be replaced by a different refrigerant that has a lower global warming professional and making sure we innovate and protect ourselves on the supply chain side. >> everybody is talking about supply chain and inflation, but i remember when we would talk about health and covid and filtration and worries about being indoors and how hvac needed to evolve to help people's concerns. what do people think right now about that as they reinvent a corporate office or house. >> that's the exciting thing we're at the middle of the secular trends so much emphasis on safety and indoor environment people spend 90% indoors and what we're seeing is that people

continue to spend on better filtration systems for their homes but we're also seeing as people come back into commercial buildings, restaurants, back into k through 12 schools, there is an appetite for more energy efficient and safer environments actually the braves are in the world series we're one of the -- if you go into the indoor spaces at the park in atlanta you will see a thermometer that tells you is it a safe and healthy indoor environment. we have it in the cherokee school system. there's appetite for schools and places where people gather to have safer, healthier indoor environments in our sweet spot as sustainability, $550 billion of the $1.7 trillion in the reconciliation the president will be talking about later this morning goes towards clean energy and right in our sweet spot safe covid distribution, we had one of our businesses very active in distributing vaccines and safe refrigerated products, that is right in our sweet spot. that business for us was up 20%

last quarter we love the secular trends for carrier. >> they've been looking good since you hit the public markets when we look back. let me end on china, 8% of your sales. obviously still important or continued important reason for you. we've been hearing about the decline overall in real estate values, concern about some of the big property companies are you seeing a sales diminish in that country as a result of some of the turmoil there? >> actually, china for us, david, was up in the last quarter and our commercial hvac business orders up 5%. i think 8% of our sales are total china but when you look at the real estate market about 2% and then the real thing that's at ever with evergrand and things going onthere is the residential multifamily in tier two, three, four cities which is a small percentage of our sales. we're in china for the long term and in china for china we would like to grow our sales in china and i think some of the risks over the next year or so in the multifamily real estate

space we're very well protected on >> dave, always appreciate you taking the time with us. thank you. >> thank you, david. as we go to break this morning, spotify up almost 30% fort month so far. higher again today as analysts digest yesterday's revenue beat. key bank does reiterate overweight and boost the price target spotify is up 25% in october that's the best month since june of last year although still about 25%ff o the high from february dow is off the highs of the morning as well, up 125. stay with us.

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northrop grumman the latest defense to report. revenue falling shorts but earnings beating thanks to the icbm replacement program. with the space segment posting organic growth of 25% northrop grumman raising the eps forecast will continue to see growth driven by space. shares under pressure today down 6.5% this brings us to another big topic which is hypersonic

missiles in an interview the military's top general confirming china did test a hypersonic vehicle designed to evade u.s. nuclear defenses called it, quote, very close to a sputnik moment for the 1950s satellite rush that put russia ahead in the cold war era space race and spurred more spending in the u.s. why alarming, hypersonics travels five times the speed of sound, go as fast as mac 20 and because they don't follow a predictable trajectory like ballistic missiles they're harder to detect or stop here's what greg hayes of raytheon technology, with the d.o.d. and northrop grumman, tested a jet hypersonic missile had to say about this on cnbc this week. >> we are behind we are behind the chinese. we are behind the russians and i think that's -- this is a great first step, but there's a lot more work to do on hypersonics on the offensive side, but more importantly on the defensive side

>> we've seen fits and starts for the better part of two decades on this development in the u.s., but we are boosting funding. the pentagon's 2022 budget request included another roughly $12 billion over the five-year plan for hypersonic. contractors are vying for the work northrop grumman, raytheon, lidos, lockheed martin which analysts say is on the forefront with six programs and according to the company, $1.5 billion in revenue from those right now still a very small piece of the overall revenue pie for lockheed and honestly when talking about hypersonics in general, part of the defense spending bill on an annual basis still very small piece but ramping and one where future growth is expected to be very strong which is also in part why we've seen the m&a and consolidation in the industry over the last couple years. >> the science behind this and the idea that the chinese are somehow ahead, is there any census to how that became the

case and/or whether we have the technology but haven't fully developed it or spent time and money on it. >> it's been on and off here in the u.s. we actually were on the forefront about two decades ago in terms of developing hypersonic technology but as i've mentioned the fits and starts in terms of budgeting and focus and development on this type of technology here in the u.s. in the meantime china and russia have continued to move forward on this. fractional orbital bombardment the term that experts are using for these tests that the chinese seem to have done this summer. the cold war concept, a weapon that could go into orbit and descend on a target and when you think about missile defense systems here in the u.s., for example, and the hundreds of billions of dollars we've spent over the years on deterrence, nuclear triad modernization underway which northrop grumman has two of the three legs of for those programs too, it's potentially broad ramifications

or questions being raised about what those defenses are going to have to look like in the future. space is a big part. >> and what becomes obsolete and what is the future we're at an amazing time as we go to break hit our etf spotlight looking at the consumer staples worst performing sector of the year, top holdings, p&g, coke and pepsi up less than 10% in 2021 underperforming the s&p. one name not helping is ul tree ya with a quarterly miss cigarette shipments volume down about 13 the company expanding share buyback from $2 billion to $3.5 billion. in theeaime mnts&p managing to get close to session highs 4585 don't go away. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,

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. welcome back i'm rahel solomon. here's your news update at this hour president biden is on capitol hill this morning meeting with house democrats. he says he has the votes to pass his compromised $1.75 trillion build back better agenda but progressives want more details biden is scheduled to outline the plan publicly about an hour from now and the house may vote on it today. the justice department stepping up its fight against corporate crime as part of an effort to hold individuals accountable. any company cooperating with prosecutors will need to identify everyone involved in misconduct, not just those that they identify as substantially involved. france has seized a british troller it says was with fishing in its waters without an license. an escalation between the two countries about fishing rights following the uk's withdraw from the european union the winter olympics now 100

days away in beijing the games face several challenges including the covid pandemic and also calls from human rights groups for countries to stay away back to you. >> thank you very much you are looking at a live shot of big oil executives set to face some questions from congress about climate change. our brian sullivan is in d.c. this morning with the latest good morning to you, brian >> good morning, carl. there is a live look we are waiting for this hearing to begin serge we are going to see the witnesses, the big oil ceos and representatives from the chamber of commerce and american petroleum institute all virtual but the congressmen and women asking them questions and some cases probably hammering them as well, will be in that senate room or house room, so wear waiting for that to begin as well we've gotten some of the opening statements this will be contentious and long it could go over five or six hours. i've seen the opening statements from a few of companies, they are i'm prepping our audience,

they're long as well comments from both the carolyn maloney from new york who is one of the ranking members with congressman ro khanna of california quote, we'll demand accountability from big oil for their role in fueling the climate crisis and deceiving the public this hearing is about two things not only about climate change, but it's about the fossil fuel companies' apparent knowledge, disinformation, misinformation campaigns stemming from the famous leaked video of the now former exxonmobil lobbyist in july from greenpeace where he basically bragged they use shadow groups and interests to hide what they knew about climate change exxonmobil providing cnbc with a statement moments ago saying, quote, our public statements about climate change are and have been truthful, fact-based, transparent and consistent with the views of the broader mainstream scientific community at the time. carl, that last part is sort of

key because looking at some of the statements i have been provided where you're going to see these opening comments they're going to say what we knew in 1970, 1980 was different than what we know now and we have tried to evolve shell and bp for their own european existence, they're going to say hey, we are working actively to decarbonize and selling american assets as well. the api and u.s. chamber of commerce there to kind of get pounded on a little bit. it will be, carl, a contentious hearing, a long hearing, and they're kind of hoping for that 1994 sort of seven dwarfes big tobacco moment some calling it the slippery six because we know in d.c. there's nothing like a good tag line. >> slippery six. like an oil slick makes me think of the comparison to big tobacco and the high-profile hearings in the 1990s, what's the expectation that we're going to

see some sort of change to government policy or regulation that comes out of this versus the fact that it's just a discussion and optics? >> yeah. i think you're right on there. first off, this is going to be the witnesses, the oil ceos, they're virtual so it takes away a lot of that in-person dramatic moment like we had in 1994 where you've got, you know, congressmen and women sort of shouting down at the ceos. they got up and lied i think what you're going to see is a conciliatory tone chevron and exxonmobil, seen some of their statements, they're going to say we agree that climate change is a serious problem and we are working to evolve to try to mitigate it terms like carbon capture and net zero and the european companies there like i said are going to say, we're doing more than is necessary, more than our u.s. counterparts and selling off assets and working to decarbonize. whether we'll get real change and regulation is unlikely

a carbon tax would be the closest thing to a legislative outcome to this hearing. a lot of noise, we'll see if there's any damage. >> you'll be following that noise in what's going to be a busy day in bringing us those headlines. thank you. >> okay. still to come, don't miss the ceo of ebay on that company's quarterly results. the stock taking a htoisry after issuing weak q4 guidance the shares are down 8% right now. we'll be back. ♪ ♪

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analysts following expected. online marketplace a 5% drop in its active buyers, at least compared to the second quarter joining us is jamie iannone, ebay's ceo good to have you let's start off there on the decline in active buyers i don't know if that's or the guidance you gave that is pressurings the shares, but what do you say to those who wonder whether or not your universe of active buyers is declining and why that would be a good thing >> look, strong quarter overall. we were up 9% year on year, two years in terms of -- revenue 10%. our strategy to high value buyers these are buyers that spend $800 with us, shop six times a year or buyers who sell and those 20% of buyers represents 75% of our gmv. and when you look at our low value buyers, those 50% of our lowest value buyers represent 5%

of gmv we're moving towards high value buyers, enthusiasts. think people who wake up, get a cup of cough fay -- coffee or type in ebay first thing in the morning that's who we're focused on and they're growing 6%. our strategy is working. we're looeaning into handbags ad sneakers and watches and growth is accelerating faster than the rest of the business, and i'm happy with our performance coming into holiday. >> all right let's talk about the guidance and if you can put it in context for us you're looking for low to high, 257 to 262 and obviously you're talking about ongoing strong execution and managed payments advertising business initiatives, offset by low teen volume decline driven by lapping dynamics what does that mean, jamie >> again, if you look at our business we were helped by the covid time period lapping those from last year, but that's why

we're talking about year over two-year metrics because they're cleaner. year over two year, our business last quarter was up 9%, which is extremely healthy. our revenue is greatly outpacing our gmv. revenue year on year was up 10% due to what you talked about which is payments in advertising. payments is doing extremely well this is managing all the payments on the ebay platform. we're managing 90% of payments and this is all towards our theme of making ebay easier to buy and sell when you come to sell on the platform, it's really easy you don't have to set up a separate account when you're a buyer you can use google pay, apple pay, credit card, debit, lots of options and our advertising business is growing well as well that grew 9% year on year and that's helping the bottom line as well. that's why revenue is outpacing gmv, but we feel great about both them coming into the holiday. >> on a broader context here, you also talked about, you know, transitory macro impacts

you didn't explain exactly what you meant and i wonder if you would elaborate here what are those transitory macro impacts you're seeing on the business, despite what you say is a modestly positive underlying growth overall? >> certainly the pandemic has played a role, so in our international businesses, they're pretty much at prepandemic levels interestingly enough, the supply chain challenges have a mixed effect on our business some cases our larger sellers, especially international, have had supply chain challenges and we've been helping them with forward deploying inventory and building warehouses in our european markets to help them with that, but at the same time ebay benefits when it's scarce when people can't find stuff they turn to ebay. in the unique, hard to find items, that helps our business there's a number of macro effects going on when you strip that away i feel great about the underlying health of the business

modestly positive growth and leaving this pandemic stronger than coming into it. >> we've talked in the past about sneakers, about trading cards. let's talk a little bit about car parts because it does seem to be something that people are focused on that you are. you talk about it being a category you're applying your innovation playbook to motor parts and accessories. what does mint when you apply that playbook for this particular area? >> we have a massive parts and accessories business it's a stronghold category for us in uk and in germany, in a leading position in terms of parts and accessories. what's great about ebay is just that breadth of inventory. we have hundreds of millions of listings of parts that we sell to consumers and what we did this year, this quarter actually, was take all of those parts listings and put them in our ebay motors app, having a one-stop shop for the vehicle

enthusiasts to help drive their parts. we also have this great my garage feature we expanded to more countries in the past two quarters what that does is if you have your car and know the type of part you want, we do the fit to make sure it's accurate and works seamlessly in the background and that's why we have a strong business what's great about ebay is the cross category shopping nature, though we'll acquire somebody into parts and they'll buy electronics or in sporting goods. we announced we're authenticating handbags over $500 and when someone comes to buy a handbag on this site, they spend $5,000 in other categories outside of handbags. leaning into all these categories including parts and accessories, that's one of the special parts of ebay. >> what about the holiday season what are your expectations as we hear many say that if you want to get your gifts, get them now, given all the supply chain issues is ebay going to be a beneficiary of that trend, given

some of the things you've described? >> we think so when you think about the holidays one of the great opportunities for ebay, we have inventory throughout the world, very distributed amongst our sellers. at times of scarcity, that is an opportunity for us as i mentioned, there may be some supply chain challenges for our cross-border business, but in general that's a great thing. the second thing i would say is that we're learning into unique areas. as other people are shipping new goods, which is more where the supply chain challenges are, we're focused on the $500 billion season business. a great example certified refurbished, 30 day warranties, money back guarantee, things like that during the holiday because they're uniquely ebay, 40% off like new products, an area we're leaning into a lot. >> we'll end on a couple things every ceo these days seems to be dealing with or talking about. it's funny to see you mention esg goals on a conference call, but we shouldn't be surprised. it's what your shareholders and

your employees i would assume want to hear from you. you're going to be 100% carbon neutral this year and will remain so going forward. i wouldn't think for the company itself it's that hard to be carbon neutral, am i wrong >> when you look at it we've been doing a lot to reduce our carbon emissions and offsets we announced we're working with mcdonald's on this louisiana solar project to buy renewable energy stepping back, esg is so core to this company it's not an initiative it's what ebay was built on, this idea of recommerce. the first item sold on ebay was a broken laser pointer when you think about the good that does having products not go to the landfill but put back into useful life that's one of the secret parts of ebay and makes us proud about our purpose. in addition our platform is used to raise money for small businesses and nonprofits. this quarter buyers and sellers raised $35 million and over the next four years until 2025 they will raise $600 million for

nonprofits i think every esg fund should have ebay as a core holding because they're so core to our business >> wow >> pure sales pitch at the end appreciate it as always. thank you for your time. >> thanks, david, for having me on. meantime big show coming up on "tech check." one of the largest ipos of the year, global foundries going public the ceo will join us speaking of chips, we'll also check in with intel's pat gelsinger at1: a 100.m. eastern time as the s&p on an intraday basis back to the highs we saw on tuesday back in a moment. ♪ ♪ ♪ ♪

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we continue to watch developments of the infrastructure bill. we have breaking news. ylan mui. >> house speaker nancy pelosi says she wants to hold a vote on the bipartisan infrastructure bill today she says that democrats need to give the president a win as he heads off to the g20 and climate summit, but it's unclear if progressives are on board yet. the head of the progressive caucus representative pramila jayapal says her readies aren't ready to take the vote and the president is taking a leap of faith in believing that all 50 senators are on board with his

broader spending plans so carl, we could potentially see a showdown if this infrastructure bill comes to the floor for a vote later today back over to you. >> all right watching every twist and turn. thank you. we got a record high on the nasdaq composite here as the s&p still hanging on to some levels just sthf 60 don't go away.

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welcome back to sq"squawk on the street." bio tech ginkgo. jason, thank you for joining us again. this conference, the third you've done, you have quite a star-studded list of bow biotech experts and investors attending in person and virtually. key topics of discussion and what that will mean for generating future business for the company. >> yeah. so gingko's business is top rate horizontal platform to program sell aws but not for people that want to make websites but for people who want to do biotech this is really our developer conference the dreamforce conference for salesforce we have developers here who want to learn more about the platform and showcase people who have been building apps on the platform

we just announced new company launch yesterday called arcae. raised $78 million in the area of biotech for beauty with investors like cha nel those are the kinds of things we like to do highlight new apps and get developers excited to develop new apps on our platform >> jason, i don't want to take away what you got going on i want you to comment on the weird tweet from scott gottlieb. >> i love scott. >> i like him too. he has a non-covid viral illness and you tried to coerce him to show up because you didn't believe him. he didn't want to put people at risk respond. >> yeah. so i'm a little bummed out because scott is a hero of mine particularly over the last two year i think he has been the most

lucid source of communication about pandemic in terms of balancing risk and reward. so i think he's spot right whatever he suggests about how we should be hosting a conference, exactly correct. i wouldn't argue with scott. i bought copies of his book for that reason. so any way, i'm bummed out by it all i want to say is i respect the heck out of him and it's too bad. >> yeah. i do want to talk about the covid piece of the business and the bio security piece of the business it continues to grow it's growing very quickly. it's half of revenues, at least for the first half of this year. certainly just mentioned that's going to be one of the things in focus at the conference today. but the other side of the business, the foundry side of the business, is getting a lot of attention, too. particularly from a number of short sellers that have issued reports in the last couple of weeks. so, talk to us about that business and how quickly you can grow that. >> yeah. so, this is exactly why we're having this developer conference so, you know, one of the things

we updated about half way through the year is that when we were doing our pipe process we thought we would get 23 new programs on the platform we updated that to 30. the stock dropped 20%. ten days it's up at all-time highs. so from my perspective i think shorts are part of the market. they can make money, too you know, it's fine for people to say what they want to say about the company and our job is to keep building if business and making it easier for people to develop on the platform and we're doing that yesterday and will be doing that tomorrow. >> to dig deeper, scorpion capital comes out with a report put pressure on the stock it did. it's a frankenstein mashup of the worst frauds. >> got a way with words. >> yeah. >> it went on like that and talked about interviews with both current and former employees as well. >> yeah. yeah he said all that stuff that's right i think the stock price and what

we have been doing in the interim speaks for itself. >> so talk to us a little bit more about the technology and what some of these short sellers are getting wrong in their analysis of it. >> yeah. i think one of the things people have a hard time understanding is ginkgo is bringing technology business models into the biotech space. way we make money, we announced our project with one of the mrna vaccine manufacturers. we transferred a strain to them. they sell enzyme input component to the vaccines. we get a royalty and so it's not ginkgo launching a product. they don't have products aws doesn't have websites. they're a service provider to other people's waebs we're a service provider to other people's products. and then we make money on royalty basis. that's a bit new in biotech and we tend to get understood better by the tech half of the house. that's one of the reasons you see a little bit of confusion. but that's the most important thing to understand about the company from my standpoint is

how it's such a scaleable business model for us. >> okay. we'll be watching this conference today jason, we appreciate you coming on shares -- >> thank you for having me, morgan. >> almost up 5% right now. david, we've got all the major averages higher, record for the nasdaq today and amazon, apple and number of other names reporting after the bell. >> big earnings coming yet again. we'll cover them tomorrow but that does it for us today. "techcheck" starts now ♪ good thursday morning, welcome to "techcheck" i'm carl quintanilla with jon fortt and deirdre bosa today a mixed picture for growth stocks megacaps are holding up the market as the nasdaq gets a new record high. are we seeing a valuation reset in tech? we're going to dive into the chip s